Washington, D.C., September 16, 2020 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 7-year British pound sterling benchmark bond, raising GBP 1.25 billion from investors globally to support the financing of its sustainable development activities.
The high-quality order book exceeded GBP 1.5 billion and attracted over 40 investors. The bond offers an annual coupon of 0.250% and a semi-annual yield of 0.367%. It was priced at +34 basis points over the 1.25% UK Gilt due July 2027. Bank of America Merrill Lynch, HSBC, NatWest Markets and RBC Capital Markets are joint lead managers for the transaction. The bond will be listed on the Luxembourg Stock Exchange.
“Today we are gratified with another strong result in capital markets in support of the World Bank’s sustainable development mission. We thank sterling investors for their continued confidence and investment to improve lives in World Bank member countries,” said Jingdong Hua, Vice President and Treasurer, World Bank.
By Investor Type
Asset Managers / Insurance / Pension Funds
Europe (excluding U.K.)
Central Banks / Official Institutions
Joint Lead Manager Quotes
“A highly successful sterling transaction by the World Bank in a rare maturity for the SSA sector. Notwithstanding the tightening during the syndication process, the size, diversity and quality of the orderbook surpassed expectations. This will establish a new benchmark for the World Bank in the longer segment of their sterling curve. Congratulations to the entire team!” said Adrien de Naurois, SSA Syndicate, Bank of America.
“This excellent outcome demonstrates IBRD’s status as a leading SSA issuer in the sterling market. The transaction marks the largest supranational or agency sterling print since April and the first 7-year GBP benchmark since the COVID-19 outbreak. The deal received high-quality and ample investor support, with notable bid from UK bank treasuries and central banks, which allowed IBRD to tighten pricing and upsize the transaction,” said Asif Sherani, EMEA Head of Syndicate, HSBC.
“Despite the ongoing market volatility, the World Bank has once again taken the lead in the sterling SSA market. The diversity of demand shows the strong standing that the World Bank has amongst investors, with the commitment to sustainable development resonating strongly. This new bond will serve as an important liquid reference point in the 7-year maturity and once again we are very proud to be involved at NatWest Markets,” said Kerr Finlayson, Head of FBG Syndicate, NatWest Markets.
“The World Bank keeps raising the bar for liquidity in the GBP market with what is now the single largest SSA 7-year benchmark. With their 4th consecutive over 1 billion GBP benchmark of 2020 World Bank has clearly demonstrated that the combination of stellar credit quality and an opportunity to support sustainable goals is a winning combination with investors,” said Jigme Shingsar, Managing Director, RBC Capital Markets.
World Bank (International Bank for Reconstruction and Development, IBRD)
September 23, 2020
September 23, 2027
0.250% per annum
Luxembourg Stock Exchange
Joint lead managers:
Bank of America Merrill Lynch, HSBC, NatWest Markets, and RBC Capital Markets
About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization. Created in 1944, it is the original member of the World Bank Group and operates as a global development cooperative owned by 189 nations. The World Bank provides loans, guarantees, risk management products, and advisory services to middle-income and other creditworthy countries to support the Sustainable Development Goals and to end extreme poverty and promote shared prosperity. It also provides leadership to coordinate regional and global responses to development challenges. The World Bank has been issuing sustainable development bonds in the international capital markets for over 70 years to fund programs and activities that achieve a positive impact. More information on World Bank bonds is available at www.worldbank.org/debtsecurities.
World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association. The World Bank is also a member of the Executive Committee of the Green Bond and Social Bond Principles. A key priority for the World Bank’s capital markets’ engagement is building strategic partnerships with investors to promote the importance of private sector financing in sustainable development.
This press release is not an offer for sale of securities of the International Bank for Reconstruction and Development ("IBRD"), also known in the capital markets as "World Bank". Any offering of World Bank securities will take place solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet and/or final terms, as applicable, prepared by the World Bank or on behalf of the World Bank, and is subject to restrictions under the laws of several countries. World Bank securities may not be offered or sold except in compliance with all such laws.
The net proceeds from the sale of World Bank securities are used to finance sustainable development projects and programs in World Bank’s member countries without being committed or earmarked for lending to, or financing of, any particular projects or programs. Returns on World Bank securities are not linked to the performance of any particular project or program.
Heike Reichelt, Head of Investor Relations and Sustainable Finance
World Bank Treasury